It’s highly possible that a perfect storm of economic and demographic
factors—from high gas prices, to re-­urbanization, to stagnating wages,
to new technologies enabling a different kind of consumption—has
fundamentally changed the game for Millennials. The largest generation
in American history might never spend as lavishly as its parents did—nor
on the same things.

48 percent of mortgage borrowers younger than 40 are currently
underwater. It's 39 percent among those who are 20-24 years old; 48
percent for the 25-29 cohort; and 51 percent for the 30-34 demographic

Being underwater means the financial penalty goes well beyond "I am paying more for this house than the market says it is worth."

It means that you have no opportunity to get out of your current mortgage and into one with a better interest rate, so you end up paying even more on the house that's worth less. It means you can't sell unless you're prepared to empty out your savings account and bring money to the table for closing. (Which is what we had to do. And it suuuuuuuuuuucks.) It means the cost of getting out of the bind you're in is often way out of reach -- no better loans, no chance to relocate for a better job -- and so you're stuck, literally and financially.

If you're just out of school, you're employed and you're building a career, why would you risk that?

Twentysomethings aren't buying houses because they're into New Urbanism. They're holding back because they've lived through the last decade and paid attention. And good for them.